The agreement also includes transformation of Idea Cellular's existing mobile radio access and core network infrastructure across nine circles for 2G and five circles for 3G. The company, however, did not disclose the financial details.

"The contract covers equipment, software and a range of professional services, including project management, systems integration and supervisory managed services for 4G/LTE across select circles for two years," Ericsson said in a statement.

Idea, the country's third-largest mobile operator, has launched 4G LTE services in eight telecom circles – Andhra Pradesh and Telangana, Tamil Nadu, Karnataka, Kerala, MP and Chhattisgarh, Punjab, Haryana and Odisha, and is looking to expand to 750 towns across 10 circles by June 2016.

Ericsson is present in all high-traffic LTE markets, including the US, Japan and South Korea, and is ranked first for handling global LTE traffic - 40 percent of the world's mobile traffic is carried over Ericsson network.